Sainsbury's to close dozens of Argos branches, supermarkets and convenience stores

OLI SCARFF/AFP/Getty Images
OLI SCARFF/AFP/Getty Images

Sainsbury's has announced plans to close supermarkets and Argos stores.

The supermarket giant said it will close 10-15 Sainsbury's supermarkets, 60-70 Argos stores and between 30 and 40 convenience stores.

A trading statement said the estate review and growth plan would see 10 new supermarkets opened, with 80 Argos stores incorporated into existing Sainsbury's supermarkets.

Around 110 new convenience stores are also planned to open.

Reflecting on the company's second quarter trading, Mike Coupe, chief executive officer, said: "Sales momentum was stronger in all areas and we further improved our performance relative to our competitors, particularly in grocery. We have focused on reducing prices on every day food and grocery products and expanding our range of value brands, which have been very popular with customers. At the same time, we are investing significantly in our supermarkets, driving consistent improvements to service and availability.

"Argos continued to grow market share in key categories, but sales were impacted by reduced promotional activity and the timing of new product releases in gaming and toys. Clothing sales were boosted by clearance activity and strong online growth and Tu continued to grow market share1. Financial Services sales were in line with expectations."

The company said they expected the closures would 'deliver an ongoing net operating profit benefit of £20 million per year', but warned that profit for the six months until September 21 was expected to be down £50 million year on year, because of cost savings, unseasonal weather and higher marketing costs.